Methods were used for data collection such as

methods were used for data collection such as questionnaires, interviews and
documentary review. The study has revealed that generally there is a positive
relationship between savings and loans issued to members. Nevertheless, all the four
studied SACCOS are faced by a challenge of none adherence to rules and policies
set out for the best running of cooper ative societies’ activities including that of loan
delivery to members. Study recommends training members on the Cooperative
Societies Rules and other SACCOS operating policies to enable them know their
responsibilities and rights in SACCOS. The Cooperative Societies Rules should be
reviewed to accommodate issues addressed as challenges in loan delivery to
SACCOS members at workplaces.

viii
TABLE OF CONTENTS
CERTIFICATION ..................................................................................................... ii
COPYRIGHT ............................................................................................................ iii
DECLARATION ....................................................................................................... iv
DEDICATION ............................................................................................................ v
ACKNOWLEDGEMENT ........................................................................................ vi
ABSTRACT .............................................................................................................. vii
LIST OF TABLES .................................................................................................... xi
ABBREVIATIONS AND ACRONYMS ................................................................ xii
CHAPTER ONE ........................................................................................................ 1
1.0. INTRODUCTION ............................................................................................... 1
1.1. Background Information ....................................................................................... 1
1.2 Statement of the Problem ....................................................................................... 3
1.3 General Research Objective ................................................................................... 4
1.4 Specific Research Objectives ................................................................................. 4
1.5. Research Questions ............................................................................................... 5
1.6. Significance of the Study ...................................................................................... 5
CHAPTER TWO ....................................................................................................... 6
2.0 LITERATURE REVIEW ............................................................................... 6
2.1 Theoretical Literature Review ........................................................................... 6
2.1.1 Conceptual Definitions .................................................................................... 6
2.1.2 Life cycle Theory .............................................................................................. 6

ix
2.1.3. Myopic Consumers Theory .............................................................................. 8
2.1.4 Saving and Saving Deposit ................................................................................ 9
2.1.5. Permanence and Growth Institutions ............................................................... 9
2.1.6 Savings Mechanism – A Framework Analysis ................................................. 10
2.1.7 Savings Philosophy ........................................................................................... 11
2.1.8. Lending Theory ................................................................................................ 13
2.2 Empirical Literature Review ............................................................................. 14
2.2.1 Demographic influence ................................................................................... 14
2.2.2 Determinants of Savings ................................................................................... 15
2.2.3 Effects of Inflation on Savings ....................................................................... 16
2.2.4 Compulsory, Locked-in Savings ..................................................................... 18
2.3 Research Gap .................................................................................................... 21
2.4 Conceptual Framework ...................................................................................... 21
2.5 Theoretical Framework ...................................................................................... 22
CHAPTER THREE ................................................................................................. 23
3.0 RESEARCH METHODOLOGY .................................................................... 23
3.1 Research Design ............................................................................................... 23
3.2 Research Area .................................................................................................. 23
3.3 Population and Sampling Technique .............................................................. 23
3.4 Source of Data and Data Collection .................................................................. 24
3.5 Data Analysis .................................................................................................. 24
CHAPTER FOUR .................................................................................................... 25
4.0 FINDINGS AND DISCUSSIONS .................................................................... 25
4.1 Background information of the respondents (Profile) ..................................... 25

x
4.1.1 Gender of Respondents .................................................................................... 25
4.1.2. General Characteristics of the Studied SACCOS .......................................... 28
4.2 Discussion of the Findings and Analysis .......................................................... 29
4.2.1. Relationship between Savings and Loans ....................................................... 29
4.2.2 Factors Affecting Growth of Members’ Savings in SACCOS ....................... 30
4.2.2.1 Income Level ................................................................................................. 32
4.2.2.2 Inflation .......................................................................................................... 33
4.2.2.3 Interest Rate on Savings ................................................................................. 33
4.2.2.4 Lack of Education on Savings ....................................................................... 34
4.2.3. Actions Necessary for the Members to Enhance the Growth of Savings and
Borrowing Capacity. .................................................................................................. 35
CHAPTER FIVE ..................................................................................................... 36
5.0 SUMMARY, CONCLUSION, RECOMMENDATIONS AND AREAS FOR
FURTHER RESEARCH ......................................................................................... 36
5.1 Summary of the Study ......................................................................................... 36
5.2 Implication of the Results ................................................................................... 37
5.3 Conclusion ........................................................................................................... 37
5.4 Recommendations .............................................................................................. 38
5.5 Areas for Further Research. ................................................................................. 39
REFERENCES ......................................................................................................... 40
APPENDICES .......................................................................................................... 44

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LIST OF TABLES
Table 4. 1: Gender of Respondents ....................................................................... 25
Table 4. 2: Marital Status of Respondents ............................................................ 26
Table 4. 3: Age Distribution of Respondents ........................................................ 27
Table 4. 4: Education Level of Respondents ........................................................ 27
Table 4. 5: SACCOS Membership Profile ............................................................ 28
Table 4. 6: Relationship between Savings and Loans from 2008 to 2012 ............ 29
Table 4. 7: Basis of Obtaining Loans from SACCOS .......................................... 30
Table 4. 8: SACCOS Members Savings from 2008 to 2012 ................................ 31
Table 4. 9: Amount of Savings Deposited by Respondents